Trends That Will Dominate Managed Services in 2023!

IT managed services trends are evolving quickly, and as we approach mid-year 2023, staying up-to-date on the latest trends that will shape the industry is essential to protect and scale your business.

Managed services refer to outsourcing IT management responsibilities to a third-party provider, including network monitoring and cybersecurity to cloud management and data analytics. The importance of managed services in today’s digital landscape is critical as businesses look to maximize their IT resources and stay ahead of the curve in a competitive market.

Explore the top IT managed services trends currently dominating the industry and that will continue to shape the future of IT management.

AI and Automation

AI and automation have revolutionized the way organizations approach IT managed services. They offer several advantages, such as automating repetitive tasks like data entry and analysis and freeing employees to focus on more complex and creative work.

Automation ensures streamlined processes, consistent service delivery, and error-free operations, enhancing efficiency, reduced costs, and scalability. However, implementing AI and automation in managed services can still be challenging for small businesses. High initial investment in technology infrastructure and training, lack of skilled professionals, and potential job loss are concerns these companies face.

Despite the challenges, adopting AI and automation in managed services is snowballing. The global AI in managed services market is expected to reach $301.2 billion by 2028, growing at a CAGR of 29.4%, according to a report by ResearchAndMarkets.

According to another report by the World Economic Forum, it is estimated that by 2025, over 50% of employees will require reskilling and upskilling to keep pace with the rapidly evolving job market, which includes emerging technologies like AI.

Several large enterprises have successfully implemented AI and Automation in their managed services, paving the way for greater operational efficiency and productivity. Notable examples include:

• IBM Watson: This AI-powered platform automates IT services, providing predictive analytics, automation of routine tasks, and cognitive insights to enhance operational efficiency.
• HCL Technologies: HCL has integrated AI and Automation into its managed services portfolio, offering a suite of tools and platforms like DRYiCE, an AI-powered automation platform that streamlines IT operations.
• Accenture: This company has developed SynOps, an AI-powered platform that leverages natural language processing and machine learning to automate tasks such as data entry, report generation, and customer service for improved service delivery.
• Wipro: Wipro has developed a range of AI and Automation tools to help businesses optimize their IT operations. The HOLMES platform, for instance, uses cognitive computing and automation to improve service delivery and reduce costs.

Cloud Migration and Management

Cloud migration and management are evolving to meet the changing needs of businesses. In recent years, there has been an increase in the adoption of cloud computing, with more firms migrating their IT infrastructure to the cloud.

According to a recent report by Gartner, the worldwide public cloud services market is forecast to grow 20.7% in 2023 to a total of $591.8 billion, up from $490.3 billion in 2022. This growth is driven by the increased adoption of cloud services across all industries.

The latest cloud migration and management trends include multi-cloud strategies and adopting cloud-native technologies. Multi-cloud involves using multiple cloud service providers to deliver IT services, allowing businesses to avoid vendor lock-in and leverage each provider’s strengths.

Cloud-native technologies refer to applications specifically designed for cloud environments using modern software development techniques for greater agility and scalability.

Cloud migration and management offer several benefits to businesses, allowing them to quickly and easily scale their IT infrastructure as needed, reduce IT infrastructure costs, access their IT infrastructure from anywhere and at any time, and implement robust security measures to protect their data.

However, businesses may face challenges, including complexity, data security risks, integration issues, and cost management. To overcome these challenges, companies can implement some best practices to ensure a smooth cloud transition. These practices include:

• Developing a cloud migration strategy: Businesses should start with a comprehensive cloud migration strategy that includes an assessment of existing IT infrastructure, selecting a cloud service provider, and a migration plan. This strategy should outline the goals and objectives of the migration, identify the applications and data to be migrated, and establish a timeline for the migration.
• Implementing security measures: To protect data and ensure compliance with industry regulations, businesses should implement robust cybersecurity measures. These measures include access controls, data encryption, network segmentation, and intrusion detection and prevention systems.
• Train staff: Cloud computing and management require specialized skills and knowledge. Therefore, businesses should invest in staff training to ensure they have the necessary skills and knowledge to manage the cloud environment effectively. Training should cover areas such as cloud architecture,
  security services, data management, and monitoring.
• Monitor and optimize cloud usage: To ensure cost efficiency and maximize the benefits of cloud computing, businesses should monitor cloud usage and optimize IT resources. This involves regularly reviewing cloud usage, identifying areas of inefficiency, and taking corrective action to optimize resource usage. Businesses can also use tools such as cloud cost management software to monitor cloud usage and identify areas of inefficiency.

Security and Compliance

Security and compliance have become critical concerns for businesses that rely on technology. This is especially true for managed services, where companies entrust their IT operations to third-party providers. Security and compliance are essential aspects of managed services because they help ensure data confidentiality, integrity, and availability while ensuring compliance with regulations and industry standards.

The significance of security and compliance in managed services can be seen in the rising number of data breaches and cyber-attacks. According to a report by IBM, the average data breach cost in 2021 was $4.24 million. This underscores the importance of implementing robust security measures and compliance frameworks to protect sensitive data and avoid costly breaches.

Challenges in achieving cyber security and compliance in managed services arise from the ever-evolving threat landscape and the increasing complexity of IT infrastructure. Cybercriminals are constantly developing new attack vectors, and businesses must stay ahead of the curve by implementing up-to-date security measures. Compliance regulations such as GDPR and HIPAA add to the challenge by requiring firms to meet specific data protection and privacy requirements.

Implementing security and compliance in managed services can offer several benefits to businesses, including:

• Protection of sensitive data: Implementing security and compliance measures helps protect sensitive data from breaches, theft, or unauthorized access.
• Increased trust: Businesses implementing security and compliance measures build trust with their customers, partners, and stakeholders. This can lead to increased loyalty and better business outcomes.
• Improved business continuity: Security and compliance measures help ensure that critical business functions can continue in the event of a breach or cyber-attack.
• Regulatory compliance: Implementing compliance measures helps businesses meet legal and regulatory requirements, which can avoid costly fines and legal issues.

To ensure security and compliance in managed services, businesses can adopt several strategies, including:

• Regular security assessments: Regular security assessments can identify vulnerabilities in IT infrastructure and help businesses implement appropriate security measures.
• Employee training: Staff training can help ensure that employees know security best practices and can avoid accidental security breaches.
• Continuous monitoring: Continuous monitoring can help detect and respond to security threats in real time, reducing the risk of a successful attack.
• Access controls: Implementing access controls can help ensure that only authorized personnel can access sensitive data or systems.

Internet of Things (IoT)

Internet of Things (IoT) refers to a network of physical devices, vehicles, home appliances, and other items embedded with sensors, software, and connectivity to enable communication and data exchange over the internet. In managed services, IoT can collect data and insights from connected devices and use them to optimize operations, reduce costs, and improve the customer experience.

One use of IoT in managed services is predictive maintenance, where sensors on equipment or machines can detect anomalies and predict maintenance needs before they become critical. This can result in cost savings, improved productivity, and increased equipment lifespan.

Another is asset tracking, where IoT sensors can monitor the location and status of assets in real-time, improving inventory management and reducing loss or theft. For instance, Walmart adopted an inventory management system powered by IoT technology and observed a decrease in out-of-stock items.

The advantages of IoT in managed services include improved efficiency, reduced costs, and enhanced customer experiences. IoT can automate tasks, reduce manual errors, and provide real-time data insights for better decision-making.

For example, a facility management company can use IoT sensors to automate temperature control in a building, reducing energy costs and improving the comfort of occupants. IoT can also provide personalized user experience, such as smart home devices that learn the preferences of homeowners and adjust settings accordingly.

However, implementing IoT in managed services can be challenging, with security and privacy concerns, compatibility issues, and data overload being major concerns. IoT devices can be vulnerable to cyber threats, providing entry points for network attacks. Integrating IoT devices with existing systems can also be challenging, and the large volumes of data generated by IoT devices can be overwhelming.

To overcome these challenges, companies can take measures such as implementing security protocols and using data analytics tools to manage and make sense of the data generated by IoT devices. Companies can also collaborate with experts in IoT implementation and management to ensure a successful deployment of IoT in their managed services.

Business Continuity and Disaster Recovery

Business Continuity and Disaster Recovery (BCDR) is a highly critical aspect of MSPs in 2023. The recent increase in natural disasters, cyber-attacks, and other unexpected events has highlighted the importance of a comprehensive BCDR plan.

According to a survey by Computing Research, only 54% of businesses have a fully documented and tested BCDR plan. This highlights the need for more companies to prioritize BCDR in their managed services strategy.

The benefits of implementing a BCDR plan in managed services are numerous. BCDR plans can help minimize downtime, protect critical data and assets, and ensure business continuity in the event of a disruption. They can also help businesses maintain compliance with regulatory requirements and protect their reputation by demonstrating preparedness to customers and stakeholders.

One of the biggest challenges is the cost of implementing and maintaining a comprehensive BCDR plan. BCDR plans also require ongoing testing and updates to ensure their effectiveness, which can be time-consuming and resource-intensive.

To ensure the successful implementation of BCDR, businesses can employ several strategies. These include prioritizing critical business processes and systems, investing in technology solutions such as cloud backups and disaster recovery as a service (DRaaS), and regularly testing and updating the BCDR plan.

Bring Your Company into the Future With National Technology Management

The world of managed services is rapidly evolving, and businesses that do not adapt to the latest IT managed services trends in the coming years risk falling behind. National Technology Management is committed to helping businesses navigate these trends and stay ahead of the curve.

With our expertise in managed services and IT solutions, we can help your company leverage the latest technologies to achieve your business goals. As we look to the future, it’s clear that the IT managed services industry will continue to evolve at an unprecedented pace.

Contact us today to learn more about how we can help your business thrive in the years to come and stay on top of the latest IT managed services trends.